Vodafone quarter sales up 2.5 per cent

BRITISH mobile phone giant Vodafone says that sales grew in the first quarter, as strength in emerging markets countered weakness in Europe.

Total sales, including joint ventures, grew by 2.5 per cent to STG10.155 billion ($A16.95 billion) in the first quarter or three months to the end of June, compared with a year earlier, Vodafone said on Friday, adding that it remains on course to meet full-year targets.

"We have made a good start to the year in our areas of strategic focus: growth in emerging markets has accelerated," said chief executive Vittorio Colao in the statement.

However, sales in Northern and Central Europe fell three per cent due to increased competition.

Southern Europe revenues dived 14.4 per cent, with particularly heavy drops in Italy and Spain, as trading conditions remained "difficult" in the region.

But the group's Africa, Middle East and Asia Pacific region posted a 5.9-per cent sales increase.

Vodafone added that its 7.7 billion euros ($A11.08 billion) takeover of Kabel Deutschland was expected to be completed at the end of this year.

Colao added: "The proposed acquisition of Kabel Deutschland will create an excellent platform for our unified communications strategy in our most important market.